Casinos Reconsider Prizefights,
Which Clash With New Image

Mike Tyson took a bite out of more than Evander Holyfield's ear. His behavior at Saturday's heavyweight match bodes ill for the future of boxing in Las Vegas, a city in search of a gentler image.

For years, boxing has been one of Las Vegas's big economic drivers, and casinos have paid big bucks to gain a virtual monopoly on major heavyweight bouts. To get Mr. Tyson, the
MGM Grand
agreed to make some astonishing concessions to the boxer's promoter, Don King, who, together with his partners, received all the revenue from ticket sales, TV rights and other promotions. For its part, the hotel was counting on favorable publicity and extra gambling revenue from the highrollers expected to linger after the fight was over.

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Many didn't linger, and patrons all over Las Vegas gambled less than usual during a big fight, according to casino executives and stock analysts. Publicity was anything but favorable.

It couldn't have happened at a worse time. With second-quarter profits squeezed by a proliferation of new hotel rooms and seasonally low tourist traffic, "It was the thing that everyone was counting on to save the quarter," says Jason Ader, an analyst with Bear, Stearns & Co. in New York. He is already planning to lower his earnings estimates by several cents a share for MGM Grand and also expects to lower his estimates for
Mirage Resorts Inc.,ITT Corp.
and
Hilton Hotels Corp.

Saturday's inglorious fight continued to make news Tuesday, when Mr. Tyson was temporarily suspended and his $30 million purse frozen by Nevada boxing authorities. The suspension is a preliminary move until the state's boxing commission meets next week to determine its final action.

The bedlam that followed the Tyson-Holyfield fight -- shutting the MGM Grand for 90 minutes -- recalled a string of violent events connected to boxing and Mr. Tyson, including the shooting death of rap star Tupac Shakur after the Tyson-Seldon fight last year. Some casino operators who have held boxing matches are questioning the value of big fights. Stephen Wynn, the chairman, president and chief executive of Mirage Resorts, has already banned boxing matches at his properties because of the security risk and bad publicity that can follow them.

The Tyson debacle illustrates the clash between the old Las Vegas and the way the city portrays itself today -- as a wholesome resort destination suitable for Middle America. It was far from that on Saturday night when Las Vegas police geared up for the various contingents expected to be on hand for a big fight: organized crime, street gangs, pickpockets, drunks and participants in an ongoing East Coast-West Coast rapper feud. People in Los Angeles joked that the city is never safer than during a Las Vegas fight -- because all the gangs head for Nevada.

Steven J. Hilton, a Scottsdale, Ariz., home-building executive who attended the fight, says he avoided gambling afterward "because you could tell there would be trouble." He adds: "It was just a bad atmosphere" -- and that's bad news for an industry bent on downplaying sex, sin and gambling to promote itself as a family-vacation destination with Broadway production shows and other wholesome attractions.

Safety is "a big part of our selling proposition -- [that] Las Vegas is a safe place," says Glenn Schaeffer, president and chief financial officer of
Circus Circus Enterprises Inc.
and an avid fight fan who once trained to be a boxing judge. Thus, he says, the criminal and violent elements attracted to the Tyson fight are "causing some consternation."

Gambling foes quickly saw an opening. "We're working on our spin on it already," says Walter Abbott, a Louisiana activist, noting that it's sure to play a role in federal hearings on gambling later this year. Tom Grey, a national antigambling activist and Methodist minister in Hanover, Ill., calls the incident a "target of opportunity" against casinos. "This is a sorry spectacle that's going to cause them a lot of trouble," he adds.

Under a contractual deal with Mr. King, the MGM agreed to hold six fights featuring Mr. Tyson and has already held five. It will hold the sixth, despite everything, if Mr. Tyson is permitted to fight. "We certainly want to continue having heavyweight boxing and certainly to have Mike Tyson back, but I think we all need to do a better job of minimizing the possibility of disruption," says Alex Yemenidjian, MGM's president and chief operating officer. How will the casino do that where Mr. Tyson is concerned? "I really don't know. I wish I knew," Mr. Yemenidjian says.

Messrs. Yemenidjian and King have been preparing to negotiate for another set of bouts. But last weekend's troubles have given Mr. Yemenidjian "a different perspective" on the next deal, he says, adding: "There are so many imponderables, so many things that can go wrong. If you think back to two years ago when I was negotiating, I have to admit I didn't foresee this."